I did a RMD payback in 2020. My IRA/RMD manager sent me a 1099 R with the payback still in the Gross Distribution. I have Turbotax Deluxe. How does Turbotax handle the payback of RMDs? I still have a Qualified Charitable Distribution (QCD) from the account and did not repay it.
Because RMDs were waived for 2020, the distribution was not an RMD even if that was the original intent of the distribution. After entering the Form 1099-R exactly as received, you must indicate that none of the distribution was RMD, then indicate that you moved the money to another retirement account (or returned it to the same account), that you rolled over some or all the distribution, then enter the amount that you rolled over.
Regarding the QCD, 2020 TurboTax presently (version R14) has a bug the prevents it from asking the necessary QCD question for those with a birthdate between July 1, 1949 and June 30, 1950. As a workaround for this, with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode or in any version of TurboTax you can temporarily change your birthdate in TurboTax to something before July 1, 1949, edit the 1099-R form in TurboTax and answer the question asking how much was transferred to charity, then change your birthdate in TurboTax back to your actual birthdate.
Thanks for this answer. Even if you return only part of what would have been your RMD to the IRA, you must check the box indicating that none of this distribution was an RMD. This answer seems to be contrary to the instructions on that entry screen which indicates that if it were an RMD to check the box that some or all of the distribution was an RMD.
WILL THIS CORRECTION BE MADE SOON?
I WANT TURBO TAX TO BE WORKING CORRECTLY.
MY BIRTHDAY IS BEFORE 1949, AND THE QUESTION ABOUT CHARITY CONTRIBUTIONS DOES NOT APPEAR FOR ME EITHER
If your birthdate is before 1949, the aforementioned TurboTax bug has nothing to do with why you are not seeing the question asking if the distribution was transferred to charity. QCDs can only be made from IRAs, not from other types of retirement accounts, so if the Form 1099-R that you received from the payer does not have the IRA/SEP/SIMPLE box marked, the amount transferred to charity does not qualify as a QCD and must instead be claimed as a charitable deduction on Schedule A or, if you do not itemize, up to $300 of this contribution claimed on Form 1040 line 10b. If the IRA/SEP/SIMPLE box is marked on the Form 1099-R provided to you by the payer, make sure that you have that box marked on TurboTax's 1099-R form.